Do Kwon is released on bail in Montenegro.
Do Kwon, the co-founder of Terraform Labs, has been released in Montenegro while awaiting the resolution of his extradition, a process that has generated uncertainty about the country that will receive him. The Securities and Exchange Commission (SEC), in its capacity as plaintiff, has filed charges against Kwon and Terraform Labs for alleged legal violations, alleging that they made misleading statements and promoted investments in UST, their algorithmic stablecoin.
The case worsened when UST lost parity with the US dollar in 2022, due to problems in the Terra ecosystem. The SEC argues that these actions were the result of irregular practices in the management of reserves supporting both $UST and the Terra network's $Luna token.
The SEC is pushing for Do Kwon to take criminal responsibility for actions taken by Terraform Labs, involving a series of allegations and an ongoing investigation. Although Kwon has been temporarily released, the legal process continues and a decision on his extradition is expected to be made in the coming days.
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